Agile Contracting: Calibration Phase

Agile Contracting: Calibration Phase

In the context of Agile delivery contracts, calibration phase aims at addressing risk and collecting metrics which will serve as input for the actual Delivery execution contract

What it is:

Calibration phase is a quarter or 2 quarters long period of intense collaboration which allows to address risks and collect metrics so that both parties fully understand the engagement. It primarily covers:

  • Key Performance Indicators (KPI’s) initial measurements
  • Feasibility of Service Level Agreements and their degree of applicability including bonus malus range if any.
  • Stress test of operating environment or ways of working defined in the contract.

Why it is critical:

Calibration phase is to assess key challenges in defined approach and mitigate them by necessary adaptations before moving into the actual Delivery execution.

Calibration should not be confused with a preparation phase: calibration is about learning while delivering, not about preparing.

When it is applicable:

As of service commencement date or as soon as contract comes in effect, calibration phase kicks-off. This period of a quarter or 2 quarters is preferably covered under separate calibration contract to avoid financial implications for both parties. Penalties are not applicable during this phase.

What is expected outcome:

Desired outcome of calibration phase is:

  • Baselined Key Performance Indicators (KPI’s) using the quantified measurements captured from a quarter or 2 quarters delivery period.
  • Feasibility of Service Level Agreements (SLA’s)
  • Validated operating environment or ways of working
  • Critical risks are captured for treatment which may derail the contractual commitments on both sides.

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